Gyroscopic Investing

On a recent podcast, the Animal Spirits guys talked about some new ETFs that track on the run treasuries. They just rolled out in August of last year. They do 3mo, 6mo, 1 year, 2 year, and 10 year. On the podcast he mentions that they're going to be bringing out a 30 year soon.

The ER is 0.15, which is the same as TLT. So for your long bonds you could get a longer duration with this company's ETF than with TLT.

For cash, BIL has an ER that's slightly lower (0.1354), but only goes up to 3 months. It's definitely lower than FDLXX (Fidelity's treasury money market) at 0.42. VGSH is 0.04, but it's not an apples to apples comparison.

Maybe something to consider.

SCHQ at 0.03% is hard to beat.

there is more that goes on then just expenses as tlt is up more then schq is ytd

tlt has duration of 17.6 and schq 16.6.

so expenses are just one component but it likely isn’t a deciding factor when comparing many funds since the funds are just inherently different.

in this case duration overwhelms any expenses difference

mathjak107 wrote: ↑Sat Mar 25, 2023 5:22 pm in this case duration overwhelms any expenses difference

Duration and ER are different conversations. When rates were rising SCHQ performed better.

I've always found TLT to be expensive, but most of those original ETFs that have been around for years and years are expensive. TLT has something like 150X the AUM of SCHQ, so they don't want to reduce the ER as it would reduce it for all the current customers...and they obviously don't need to reduce it to get funds. GLD is in a similar boat, its ER is ridiculous yet people keep buying it.

Vanguard VGLT is another option, ER .04%.

Xan wrote: ↑Sat Mar 25, 2023 9:07 am SCHQ at 0.03% is hard to beat.

SCHQ is beating TLT on a total return basis. Last time I looked the SCHQ history was too short to see that, now it's obvious on Stockcharts / PerfCharts.